Business Environment Analysis: Purpose, Scope, and Functions

This report provides a comprehensive analysis of the business environment, focusing on the purpose, scope, and functions of different organizational types, including public (NLCCE), private (Dyson Limited), and voluntary (Age UK) sectors. It explores the legal structures, objectives, and stakeholders of each organization. The report delves into the relationships between various organizational functions and how they contribute to business structure and objectives. Furthermore, it examines the impact of macro-environmental factors through PESTEL analysis and analyzes the internal and external environments of companies, including the interrelation of strengths and weaknesses with macro factors. The report offers a detailed understanding of how businesses operate within their environment, including an examination of SWOT analysis to identify opportunities and threats.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain various different purpose and type of organisation.................................................1
P2. Define scope and size of different type of organisation.......................................................3
TASK 2............................................................................................................................................5
P3. Describe relationship among functions of organisation and in what manner they are
linking with business structure and objectives............................................................................5
TASK 3............................................................................................................................................6
P4. Examine positive and negative factors which have impact on macro environment on
organisation. ...............................................................................................................................6
TASK4.............................................................................................................................................8
P5. Analyse external and internal environment of company......................................................8
P6. Describe how weaknesses and strengths interrelated with macro factors. ..........................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business refers to as an activity which includes selling and buying of goods with motive
of earning profit and living standard. The main objective of business is to increase profit for earn
of livelihood (Čepel and et. al., 2018). Business environment is define as combination of micro
and macro factors which affects functioning of business in direct and indirect manner. It also
ensures for gaining competitive advantage in country against competitive rivalries. When these
forces are considered these helps in achievement of best results and maximise the profit. When
individual wants to conduct a business whether small or big they have to considered these factors
which helps organisation for surviving at long period of time.
In this report it involves public ( NLCCE), private ( Dyson Limited), voluntary (Age UK)
is considered. North London Chamber of Commerce and Enterprise ( NLCEE) is a public
organisation which helps individual for set businesses and organisation nationally, globally and
locally which also includes some specific support to international trade and some impact of
environment of business.
This report also covers vision, mission, legal structure, scope, size, objectives,
stakeholders and so on. It also includes SWOT & PESTEL analysis which helps in identifying
opportunities and design them in appropriate manner for identifying macro and micro
environment of world. Furthermore, it involves functions of business with also considers their
benefits and drawbacks. At last company includes how organisation is interrelated with each and
every structure of firm which is considered.
MAIN BODY
TASK 1
P1. Explain various different purpose and type of organisation.
Organisation is define as place where group of individual who come together for
performing some specific task of organisation. It may be profitable as only works for motive of
earning profit or non profitable which works for welfare of society (Gaganis, Pasiouras and
Voulgari, 2019). There are many types of organisation which are discussed below:
Public sector organisation: This type of sector is define as organisation which are
governed and owned by government bodies and have existence for facilitates services to citizens
of society. The aim of this organisation is not earning profit but provide welfare of society and
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public. NLCEE is taken as public sector firm which is offering wide range of special services for
create growth of business and also helps company for raise opportunities for profile.
Purpose: The main objective of this sector is to facilitates services to public which leads
to benefit for society which involves government services and public goods.
Legal structure: Central government: In public sector they are fully control or in hand of central
government and all types of operations are funded, formed and managed by central
government bodies. These generally collect fund in form of income tax from general
public. State government: In this legal structure, companies mainly controlled by state
government which are situated in specific states.
 Local government: In this structure, organisation are owned and governed by local
authorities and councils such as municipals, local body and so on. They collect amount in
terms of funds which have form of council tax (Martins and Nienaber, 2018).
Private sector organisation: This type of business generally controlled and owned by
individuals or group of people for main motive of earning profit. These companies are almost
free from control of government. Dyson Ltd. Is a private sector organisation which is British
technology firm. This company manufactures or designs households appliances such as heaters,
lights, hair dryers, vacuum cleaners and so on.
Purpose: The objective of this type of organisation is to earn profit, employ more team
members, money and attainment of goals and objectives of company.
Legal structure:
 Sole proprietorship:This type of organisation is owned and control by single
individual by considering small amount of capital with main purpose of earning
profit. These individual bears all risks and have full control on activities of business.
 Partnership: This company is consist of group of individual which are come together
for running business by agreeing on partnership deep for main goal of earning profit.
In this association each and every partner have to bear all debts, profits and losses
equally and also they have to follow provisions which are made under partnership act
1980 (Nikitina and Lapiņa, 2019).
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 Limited company: This type of associations are considered as joint stock ventures
and incorporation in which organisation has separate legal entity from their owners.
In UK all companies have to follow rules and regulations which are under provision
of companies act 2006.
Voluntary organisation: In this type of organisation, group of individuals come together
into agreement for specific enterprise in order for achievement of common goals and purpose.
Age UK, is voluntary organisation which is largest charity operation which helps society for
make future of many individual and also make proper living standard of society.
Purpose: The main objective of this organisation is to generate or create social wealth
and also offers benefits to society.
Legal structure: Trust: Voluntary organisation is a public trust which is considered as traditional
constitution for charities and trust which is managed and governed by trust deed for
defined objectives and purposes.
 Unincorporated association: In this type of enterprise, they have limited guarantee and
and working by group of volunteers or communities as this type of organisation is
constitute in memorandum of article and association (Bland and Osterwalder, 2019).
P2. Define scope and size of different type of organisation.
NLCEE: This organisation is a public company which supports and represents business
by providing charities and education all over North London. It also provides specialist services
which helps in creating business growth and generate new opportunities and new connections for
company. Background:This company is located in London and also part of business service sector
industry. This organisation is build to generate new opportunities and new connections
which helps in growth of company. Size: NLCEE limited have 7 employees at their location and also generates $ 28723 in
sales. Almost 5 companies are there in this public organisation which also have corporate
family. Product & services: This company helps by providing services such that individual can
get opportunity for starting new business at local and international level. This can create
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maximisation of profit and also welfare of society (Kokodey, Gnezdova and
Lomachenko, 2018). Vision: Company is an independent membership led organisation which represents and
supports business and educate children by providing them good quality of education
facilities. Mission: This statement of company as individuals wants to attain objectives which leads
to gain new opportunities and advantages for company which helps in increase
profitability for organisation.
 Objectives: Main motive of company is to provide services for individuals as they wants
to open business at local or international level.
Dyson Limited: This is a well known private organisation of British Technology which
is founded in 1991 and deals in manufacturing & designing household appliances. Background: This company was founded by James Dyson in July 1991 having it's
headquartered in England. It mainly deals in technology and also designs appliances for
household use. Size: This technology organisation has more than 12000 employees which mainly have
scope globally. Product & services: Products which are provided by respective company are such as
hand dryers, heaters, air purifiers, lights, vacuum cleaners and so on. Vision: The vision of company is to maintain and facilitate cost effective, integrated and
provide sustain products which have responsive for requirement of supporting growth,
users and their customer products. Mission: Companies mission is to examine solutions of each and every day issues which
makes life of people in easiest manner (Belyaeva, 2018).
 Objectives: The purpose of Dyson Limited is to develop and design effective
machineries, increase in shipping efficiency and also reduces unnecessary wastages and
consumables.
Age UK: This organisation is largest charity of registered country such as UK. This
organisation is dedicated for help every individual that makes life better by support, advice for
old age people, championship and so on.
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 Background: This organisation was formed in 2009 and launched in April 2009 which
combines functions and operations of past charities age concerned in England. This
company have headquartered in London UK and also considered as largest charitable
organisation. Size: This company have network around 130 local Age UK and also supports old age
people in more than about 40 countries worldwide. Products & services: This organisation offers a range of financial services and product
for meet all needs for people in their life and also provides community support. Vision: The vision of company is to make country a good and great place for developing
the people by enabling, supporting and inspiring them in several ways. Mission: Company wants to lead way in empowering, connecting and enabling old age
people in London Borough of Croydon for provide live healthy and independently
(Khmara and Kronenberg, 2018).
 Objectives: The purpose of Age UK is to support old age people of locally area which
offers high quality services which helps in reducing risk of their isolation and loneliness.
TASK 2
P3. Describe relationship among functions of organisation and in what manner they are linking
with business structure and objectives.
There are different departments which are interlinked or dependent on each other
indirectly or directly. NLCEE is a public company which requires coordination and cooperation
within all departments for performing activities effectively & efficiently and also motive for
earning profit & social welfare. There are many interrelationship within several department
which are discussed below: Purchase and Research & development department:In purchase department, managers
have to buy raw materials in appropriate manner which have outcome in proper and fully
utilisation of materials and resources on other hand R&D department which have to
examine and understand the current market conditions and forecast the future. These both
department helps NLCEE for purchase raw materials that must be according to market
expansion. This leads to increase in efficiency and effectiveness in organisation activities.
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 Finance and informational technology department:When there is valid and appropriate
information which are considered at right place, on right time must be delivered
according to market requirements. Finance is considered as appropriate system which is
required for collect information and up gradation in IT sector which requires some
specific amount of capital. In terms of respective company, there is a coordination
between both departments for developing delivery online shopping process with
developing software and technologies. Finance department is also helps in organising and
planning fund for each and every divisions. This leads to increase in profitability by sales
and also development of organisational structure.
 Marketing and HR department: As marketing is considered as essential part of every
business for advertising of their services or products in market for attract customer value
and also social welfare of country. But human resource department have highly
requirement of highly skilled and potential candidate for effective marketing activities.
As when there is proper coordination between two departments of NLCEE Ltd. Has
achieved high productivity and profitability with also strong base of customers and
knowledgeable workforce (Boone Kurtz and Berston, 2019).
TASK 3
P4. Examine positive and negative factors which have impact on macro environment on
organisation.
External environment affects performance and business operations and they are
considered as external forces which are not in control of company. PESTEL analysis is
considered by firm for analyse and understand whole market conditions and also collects
information which influence business activity (Keller, 2018). In terms of NLCEE there is
PESTEL analysis which is discussed. It also effects negatively as well as positively manner
which are discussed below: Political factor: In UK there is constitutional monarchy which is influence the
parliamentary system. There is fair, stable country that provides opportunities for public
sector company. Positive impact of this factor on NLCEE are relatively fair country
which is helpful in split into local and national administration. Also there is politically
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stable situation which have proactive government condition. Negative impact of this
factor is as there is uncertainty due to Brexit and also some well hidden corruption. Economic factor:In UK there is strong economic situation as relative countries. There is
high GDP and diverse economic situation which leads to public sector organisation as
NLCEE. There are some positive impact such as due to large population this allows
company for even small market that have to be profitable. There is a free market which
leads to increase in foreign direct investment. There are also some negative impact of this
factor as lot of capital have to spend in providing free public services and financial aids to
needy people (Ifinedo Pyke and Anwar, 2018). Social factor: These factors are considered as important factor of analysis. As there are
many social standards which creates better all around circumstances. There are many
positive as high living standard and also migration which leads to free public services.
There are also some negative impact such as increase and high dependency ratio and also
increase in further education costs (Hair Jr, Page and Brunsveld, 2019). Technological factor: These factor mainly considers innovation in technology, R&D
department, IT sector and so on. In terms of NLCEE there are many factors which have
impact on good access for technology. Positive impact of this factor is expertise in IT and
science and also quality innovation skills. On other hands there are also some negative
impact such as slow technological development as compared to United States. Environmental factor: There are many environmental factors such as weather, climate
situations. In terms of NLCEE there many industrial development which leads to positive
impact on company as company is following eco friendly services and products by using
less plastic waste. But there is also negative impact as due to weather issues there is many
issues which is generated for company.
 Legal factor: In terms of legal factors there are many rules and regulations that have to
be followed by company which leads to positive impact on company. As they are
following all rules which provides opportunities for company. But on other hand there is
also negative impact as organisation is not follow any type of laws it creates problem for
firm.
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TASK4
P5. Analyse external and internal environment of company.
By examining negative and positive aspects of two organisation such as public (NLCEE)
and private ( Dyson) which is considered by SWOT analysis which helps in examining current
position and condition. It includes strengths, weaknesses, opportunities and threats in relation to
external and internal environment of organisation.
SWOT analysis of NLCEE
Strength
 There is a advantage of proposition,
business or products which create
strength for organisation.
 There is a innovation in aspects of
business which creates unique selling
products which helps in retaining
assets, people, experience and data.
Weaknesses
 There is a weakness such as gaps in
capabilities which create disadvantages
for business, products.
 There is also financial constraints due
to poor systems and processes.
Opportunities
 There is a growth opportunities which
generate market development and
geographical opportunities for public
organisation (Kasemsap, 2018).
 There is a seasonal influences which
make opportunities for company as
there create niche market segment.
Threats
 There is a potential threat for a business
such as legislative changes, political
factors.
 There is also a threat as environmental
pressure and also decrease in customer
demand.
SWOT analysis of Dyson Limited
Strength
 Company offers opportunities to every
one who are positive and creative
thinkers.
 Organisation is focused on R&d
Weaknesses
 As due to high quality of products and
innovation there is high prices in
comparison to their competitors.
 Products of company can be easily
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activity instead of promotions which
produce high quality in their products.
 Innovation in their products is main
strength of Dyson limited.
copied by each other as their ideas can
sue and fight which damage a little
brand image of company.
Opportunities
 There is a opportunities for company as
there is a online presence which helps
in increase in sales as it offers ability
for buying products from online media.
 In terms of Dyson Limited there is lot
opportunities as company expand their
sales and production all across the
world.
Threats
 As small have idea of copy the
information and creates bags which
sales at low prices.
 There are lot of competitors as they
also have high brand image this leads to
situation of fight hard as also beat them
because loyalty in customers are
difficult to change.
P6. Describe how weaknesses and strengths interrelated with macro factors. Political factor: With help of SWOT analysis there is also inter-connected with macro
factors. Company can use strengths of these factors which helps in increasing market
share. Economic factor: This factor of external environment forces which is prevailing in
market share. There is high or strong relationship of SWOT analysis with external
factors. This leads to weakness for company as they have to follow rules and regulations
which are made by UK government. Social factor: This element of external analysis have strong relationship among SWOT
analysis which provide help to society by giving proper opportunities for opening new
business units. So there have to be a proper research is conducted for generate
competitive among other rivalries (Brennan, Canning and McDowell, 2020).
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 Technological factor: In this context, SWOT analysis have to make relation with macro
factors which helps in emerging the desires and need of their buyers that have to be
fulfilled.
CONCLUSION
From above report it has been summarised as SWOT and PESTEL analysis is very
important as it helps in analysing internal and external factor of company which leads to carry
out strategies of company which is been implemented. When there is a identification of
strengths, weaknesses, opportunities and threats which helps in success of company.
Furthermore, this report also covers many types of organisation which are focusing on realistic
manner. In addition, this report also involves legal structure, mission, vision, scope and size
which helps in attainment of objectives by effectively and efficiently.
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